To help or not to help?

Discussion in 'Lawn Mowing' started by PRECISION LC, Feb 18, 2003.

  1. PRECISION LC

    PRECISION LC LawnSite Member
    Posts: 145

    The other day I had one of my friends Dad approach me and asked if I would be intreseted in a new business vnture. Sure, i said, he has two sons in high school that have been the kids in the neighborhood who mow. He asked me if I would help his kids aquire some new accounts, or basically give them some of mine now or in the future. The first 10 I got them, I would recieve a 20% cut , the next five a 15% cut, all the rest they woluld get all 100% but my cut on the 15 accounts would go to 25%. This would only be for this season only, every season after they cut me off.

    So what do you think, would you do it?

    Thanks Kyle
     
  2. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    I would not. If i were in this situation, and i had extra lawns to give away, i would sub them to them indefinately, asuming they do quality work. That way you are never in "fear" of getting cut off.
     
  3. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    can you spell: liability..... reputation.....?
     
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    NO! creating your own competition is not good for your business.
     
  5. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    I vote try to help them but not necessarily in that way, that is up to you. A friend who is 16 locally, is freinds with a larger LCO, my friend does great work and is very reliable, charges higher, isn't a scrub etc. was using Honda 21's and Stihl 2 cycle, well his LCO friend said look i got these 10 or 15 lawns can't remember, and I need them done. You could use nicer equipment so how bout if I give you a 48" hydro Scag w/b and these accounts if you maintain the accounts for the rest of the season? The Scag is like a mid '90's in good shape. So friend now has 15 more good accounts and better mower and the LCO got a season's work out of it. Of course I'm not suggesting this, but it's just an example maybe give you an idea, but helping them wouldn't be a bad idea, just don't associate your company name with the work they will be providing. Give them advice on marketing or even help them design and distribute fliers, etc. Teach them don't do it for them!
     
  6. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    bobbygedd, good point but still if they are friends they won't tread on his turf (pun intended) and also they could be useful such as backup help, or regular help, etc. what if he gets sick or has a breakdown or loses an employee suddenly? You can argue it from both sides! I guess you have to know and trust them and the customers both huh.
     
  7. SLS

    SLS LawnSite Bronze Member
    from Mars
    Posts: 1,540

    Using a $40 per cut lawn as my basis (and based on 36 cuts per year) I came up with:

    $2880 for the first 10 lawns at 20% ($8.00 per cut)
    $1170 for the next 5 lawns at 15% ($6.50 per cut)

    That's a total of $4050 for the 15 lawns that you hustled up for your pals....total for up to 15 lawns

    Providing that you found them 16 or more lawns at $40 per cut (36 visits each per year) you would then max out at $5400 (25% of 15 $40 lawns).


    Consider that if you kept the 15 lawns yourself they would generate $21,600 in one year (36 visits -mowing only). add "extras" (hedge/bush trimming, fall cleanups, fert, ect.) one can see were it would generate quite a bit more. And if you retain those accounts for several years...well, it adds up fast.


    Nope...I wouldn't give up the accounts. They would be getting a heck of a deal...particularly if they retain the clients year after year.

    I've kept 95% of my clients for the last 4 years. It would kill me to think that I had given up more than $86,400 in revenue from just 15 of those accounts in just 4 short years...for only $5400. Besides, getting them is half the battle. :)
     
  8. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Another business venture?? hahahahahahahahahahahahahahahahahahahahahah

    Sorry, I'm off the floor now. :dizzy:

    He's trying to buy you off to help get his loser kids up in biz. Apparently their work or desire to find work is not very good. Tell them to take a hike.
     
  9. crazygator

    crazygator LawnSite Bronze Member
    Posts: 1,048

    No, not on those terms.

    But have you considered hiring them as your new crew? Then they could have much more work, but YOU would have the control over the customers that YOU find. Plus YOU could keep them for as long as your relationship lasts.

    And YOU would get much much more money doing it this way. Just a thought!
     
  10. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Does the term "pound sand" mean anything? :rolleyes: If they want accounts, go get them.

    You must have a pretty good size business to give up 10 or 15 accounts at your ripe young age of 20.
     

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